News / Iran Today

Iran Subsidy Reform Plan

Wednesday, 13 May 2015 7:58 AM [ Last Update: Wednesday, 13 May 2015 7:58 AM ]

A man injecting fuel in his car in Iran.

Mahmoud Ahmadinejad, the former Iranian president, dared to implement the subsidy reform plan in Iran after all the administrations which took office after the Iraq-imposed war put the plan on the back burner for several reasons.

Aimed at freeing Iran of the heavy burden of general subsidies to better support the poor, the subsidy reform plan, also known as the targeted subsidies plan, started in 2010 by a mandate from the parliament which tasked the then-administration with carrying out its provisions on the country’s economy.

Iran’s subsidy reform plan is now in its fifth year. The original plan was for the revenues generated by it to be spent on the poorest strata of the Iranian society and on making the country's industries and production units more efficient, thus lowering unemployment rates across the country.

However, at the very outset the government of the time started giving every Iranian household a monthly cash handout as compensation for the subsidies removed.

The Rouhani administration is bound by law to prevent the rich from getting subsidies by the end of the current calendar year, March 20 2016. Stay with us to learn about the progress of the plan and the methods President Rouhani's administration has adopted to detect the rich.

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